Assume that The Sandy Creek Nature Center, a not-for-profit organization, started the fiscal year ending December 31, 2009 with $50,876 in temporarily restricted net assets. The amounts are restricted for the following:
• Restricted for educational programs relating to preservation of wetlands $15,240.
• Restricted for future equipment purchases $20,000 (Fixed assets are recorded as unrestricted when acquired) and
• A promise to provide $3,000 each of the next six years for general support. Assume the pledge was made on December 31, 2008 and the present value of six (January 1) payments discounted at 6 percent is $15,636.
During the fiscal year ended December 31, 2009, the following transactions occur:
(a) The first $3,000 installment on the pledge receivable was received.
(b) Expenses related to educational programs on conservation of wetlands were incurred and paid in the amount of $10,485
(c) The $20,000 received in a prior year for equipment, together with an additional $25,500 was used to acquire equipment.
(d) Interest of 6% is recorded on the remaining balance of the pledge receivable.
Required: Prepare the journal entries necessary for the above transactions:

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The Answer of Assume that The Sandy Creek Nature Center, a not-for-profit organization, started the fiscal year ending December 31, 2009 with $50,876 in temporarily restricted net assets. The amounts are restricted for the following:
• Restricted for educational programs relating to preservation of wetlands $15,240.
• Restricted for future equipment purchases $20,000 (Fixed assets are recorded as unrestricted when acquired) and
• A promise to provide $3,000 each of the next six years for general support. Assume the pledge was made on December 31, 2008 and the present value of six (January 1) payments discounted at 6 percent is $15,636.
During the fiscal year ended December 31, 2009, the following transactions occur:
(a) The first $3,000 installment on the pledge receivable was received.
(b) Expenses related to educational programs on conservation of wetlands were incurred and paid in the amount of $10,485
(c) The $20,000 received in a prior year for equipment, together with an additional $25,500 was used to acquire equipment.
(d) Interest of 6% is recorded on the remaining balance of the pledge receivable.
Required: Prepare the journal entries necessary for the above transactions:

Assume That the Sandy Creek Nature Center, a Not-For-Profit Organization